ShaanGu(SH:601369)2019-04-17 16:00Financial Performance - The company's operating revenue for 2018 was CNY 5,038,835,609.95, representing a 27.31% increase compared to CNY 3,957,902,807.15 in 2017[25]. - The net profit attributable to shareholders for 2018 was CNY 350,288,042.51, a 45.30% increase from CNY 241,081,341.95 in 2017[25]. - The net profit after deducting non-recurring gains and losses was CNY 66,871,502.41, showing an increase of 838.63% compared to CNY 7,124,386.46 in 2017[25]. - The net cash flow from operating activities for 2018 was CNY 523,080,416.31, a significant increase of 260.18% from CNY 145,225,757.58 in 2017[25]. - The basic earnings per share for 2018 was CNY 0.2138, up 45.34% from CNY 0.1471 in 2017[26]. - The diluted earnings per share for 2018 was also CNY 0.2138, reflecting the same growth rate of 45.34% compared to 2017[26]. - The total assets at the end of 2018 were CNY 18,091,018,924.48, a 13.65% increase from CNY 15,918,379,465.56 at the end of 2017[25]. - The net assets attributable to shareholders at the end of 2018 were CNY 6,196,994,561.35, a slight increase of 1.94% from CNY 6,079,183,260.41 in 2017[25]. Dividends and Shareholder Returns - The company plans to distribute cash dividends of RMB 2.00 per 10 shares, totaling RMB 335,346,046.60 to all shareholders[6]. - The company has confirmed no non-operating fund occupation by controlling shareholders or related parties[7]. - The company has confirmed the absence of any significant omissions or misleading statements in the annual report[3]. Audit and Compliance - The company received a standard unqualified audit report from Sigma Accounting Firm[3]. - The board of directors and management have ensured the financial report's authenticity, accuracy, and completeness[5]. - The company has not violated decision-making procedures for external guarantees[7]. Risks and Future Outlook - The company has detailed specific risks related to its production and operational activities in the report[7]. - The company has outlined its future plans and potential risks, advising investors to be cautious[6]. - The company has stated that the future plans mentioned do not constitute a substantive commitment to investors[6]. - The company faced market risks due to economic cycles and uncertainties, impacting traditional product demand[134]. Business Strategy and Market Position - The company aims to become a provider of integrated solutions in the distributed energy sector, focusing on energy supply-side innovation[36]. - The company is transitioning from a single product manufacturer to a comprehensive solution provider in the distributed energy field[38]. - The company is focusing on market expansion in areas such as industrial parks and smart cities, integrating green and intelligent energy solutions[37]. - The company is actively seeking international market support and aims to deepen its international business development[126]. Contracts and Projects - The company achieved an order volume of RMB 11.779 billion in 2018, representing a year-on-year increase of 23.72%[50]. - The company signed a contract for a 550,000 tons/year heavy oil catalytic cracking project, marking its capability to design and manufacture high-pressure hydrogen compressors[56]. - A contract was signed for a 150,000 tons/year single-pressure nitric acid three-in-one unit, the largest of its kind in China, indicating a significant advancement in the single-pressure nitric acid process[7]. - The company secured a contract for a 1.2 million tons/year raw material pretreatment unit and a 600,000 tons/year coal tar deep processing joint unit, representing a breakthrough in the coal tar hydrogenation market[8]. Research and Development - The company applied for 19 patents in 2018, including 8 inventions, and held a total of 147 valid patents by the end of 2018[68]. - The company established a digital division to enhance operational performance and competitiveness, contributing to the implementation of China's Manufacturing 2025 initiative[64]. - The company is developing new energy-saving and environmentally friendly industrial technologies, particularly in distributed (renewable) energy[125]. Financial Management - The company has implemented a cash dividend policy, distributing 2.00 CNY per 10 shares in 2018, totaling 335,346,046.60 CNY[138]. - The total amount of entrusted financial management reached RMB 14.26 billion, with an outstanding balance of RMB 5.07 billion[177]. - The company has invested RMB 11.71 billion in financial products, with an outstanding balance of RMB 2.38 billion[177]. Customer and Supplier Relations - Customer satisfaction reached 96.7% through initiatives like "Every Order Must Visit" and proactive customer feedback collection[69]. - The top five customers generated sales of 138,332.44 million yuan, accounting for 23.61% of the annual total sales[90]. - The top five suppliers had a procurement amount of 79,485.75 million yuan, representing 17% of the total annual procurement[93]. Corporate Governance - The company has committed to reducing and standardizing related party transactions with Shaanxi Blower Group[144]. - The company has a long-term commitment from Shaanxi Blower Group not to engage in competitive activities within China[142]. - The company has a long-term commitment from its major shareholder to increase its stake in the company[144]. Social Responsibility - The company invested RMB 17.4 million in three poverty alleviation projects, helping 212 registered impoverished individuals to escape poverty[200].